Welcome!

Agile Computing Authors: Liz McMillan, Elizabeth White, Pat Romanski, Larry Alton, Astadia CloudGPS

News Feed Item

Savaria Announces its Best Quarter in History

LAVAL, QUEBEC -- (Marketwired) -- 08/07/14 -- Savaria Corporation (TSX: SIS), North America's leader in the accessibility industry, discloses its results for its second quarter ended June 30, 2014.

Second-Quarter Highlights

--  Record revenue for a quarter, at $22 million, up 13.3%, from $19.4
    million same quarter in 2013;


--  Operating income of $2.6 million, up 33.2% compared to same quarter in
    2013;


--  Earnings before interest, taxes, depreciation and amortization
    ("EBITDA") of $2.7 million, up 6.9%, compared to $2.5 million in same
    quarter 2013;


--  Declaration of a dividend of 3.5 cents per common share;


--  Inflow of net proceeds of $17.6 million following the conclusion of a
    private placement.

A Word from the President

"Results for the second quarter of this year show a growth in demand for accessibility products. Once again, we have achieved best ever results in revenue and EBITDA, with quarterly revenue of $22 million, up 13.3% compared to the second quarter of 2013, and our operating results increased 33.2%," declared Marcel Bourassa, President and Chief Executive Officer of Savaria.

"With more than $17 million in cash, we are in a great position to expand our organic growth strategy and realize any interesting potential acquisition," concluded Mr. Bourassa.

Operating Results (Comparative Analysis with Second Quarter and First Semester of 2013)

--  In the second quarter of 2014, revenue is up $2.6 million or 13.3%, from
    $19.4 million in second quarter of 2013 to $22 million in 2014. For the
    first semester of 2014, revenue is up $3.1 million or 8.4%, from $36.6
    million to $39.7 million.


--  The gross margin for the second quarter of 2014 is up by $801,000, at
    30.6% of revenue compared to 30.5% in the second quarter of 2013. For
    the first semester, the gross margin is up by $1 million, at 29.9% of
    revenue compared to 29.6% in 2013.


--  Operating income for the second quarter of 2014 increased by $643,000 or
    33.2% from $1.9 million in 2013 to $2.6 million in 2014. For the first
    semester, operating income increased by $339,000 or 9.1%, from $3.7
    million in 2013 to $4.1 million in 2014. Were it not for an income of
    $350,000 recorded in the first semester of 2013, operating income for
    the first semester of 2014 would have been up $689,000 or 20.5%.


--  At $1.5 million, net income for the second quarter of 2014 is up 8.5%,
    from $1.4 million for the second quarter of 2013, an increase of
    $121,000. For the first semester, net income is up 3.5%, from $2.7
    million to $2.8 million, an increase of $94,000.


--  EBITDA for the second quarter is up $173,000, from $2.5 million in 2013
    to $2.7 million in 2014, an increase of 6.9%. For the first semester
    2014, EBITDA is up $115,000, from $4.8 million in 2013 to $4.9 million
    in 2014, an increase of 2.4%. Were it not for the income of $350,000
    recorded in 2013, the increase in EBITDA for the semester would have
    been $465,000 or 10.4%.

Share Capital

During the second quarter, the Corporation completed a private placement, issuing 5,750,000 common shares, resulting in net proceeds of $17.6 million. As at June 30, 2014, 29,554,614 common shares were outstanding compared to 23,010,864 as at June 30, 2013.

Dividend

As per the Corporation's dividend policy, the Board of Directors has declared a dividend of 3.5 cents ($0.035) per common share, payable on August 29, 2014 to shareholders of record of the Corporation at the close of business on August 15, 2014. This is an eligible dividend within the meaning of the Income Tax Act.

Savaria Corporation (savaria.com) is North America's leader in the accessibility industry focused on meeting the needs of people with mobility challenges. Savaria designs, manufactures, installs and distributes primarily elevators for home and commercial use, as well as stairlifts and vertical and inclined platform lifts. In addition, it converts and adapts minivans to be wheelchair accessible. The diversity of its product line, one of the world's most comprehensive, enables the Corporation to stand out by proposing an integrated and customized solution for its customers' mobility needs. Its operations in China have substantially grown and the collaboration with Savaria's other Canadian facilities increases its competitive edge in the market place. The Corporation records some 60% of its revenue outside Canada, primarily in the United States. It has a sales network of some 600 retailers in North America and employs some 410 people at its head office in Laval and at its plants and sales offices in Montreal (Quebec), Brampton and London (Ontario), Calgary (Alberta) and Huizhou (China).

Compliance with International Financial Reporting Standards ("IFRS")

The information appearing in this press release has been prepared in accordance with IFRS. However, the Corporation uses EBITDA for analysis purposes to measure its financial performance. This measure has no standardized definition in accordance with IFRS and is therefore regarded as a non-IFRS measure. This measure may therefore not be comparable to similar measures reported by other companies. Reconciliation between net income for the period and EBITDA is provided in the Financial Highlights section below.

Cautionary Notice Regarding Forward-Looking Statements

Certain information in this press release may constitute "forward-looking statements" regarding Savaria, including, without being limited thereto, understanding of the elements that might affect the Corporation's future, relating to its financial or operating performance, the costs and schedule of future acquisitions, supplementary capital expenditure requirements and legislative matters. Most frequently, but not invariably, forward-looking statements are identified by the use of such terms as "plan", "expect", "should", "could", "budget", "expected", "estimated" "forecast", "intend", "anticipate", "believe", variants thereof (including negative variants) or statements that certain events, results or shares "could", "should" or "will" occur or be achieved. Such statements involve known and unknown risks, uncertainties and other factors liable to cause Savaria's actual results, performance or achievements to differ materially from those set forth in or underlying the forward-looking statements. Such factors notably include general, economic, competitive, political and social uncertainties. Although Savaria has attempted to identify the key elements liable to cause actual measures, events or results to differ from those described in the forward-looking statements, other factors could have an impact on the reality and produce unexpected results. The forward-looking statements contained herein are valid at the date of this press release. As there can be no assurance that these forward-looking statements will prove accurate, actual future results and events could differ materially from those anticipated therein. Accordingly, readers are strongly advised not to unduly rely on these forward-looking statements.

www.savaria.com

Facebook: https://www.facebook.com/savariabettermobility

Twitter: https://twitter.com/Mobilityforlife

Complete financial statements and the management's report for quarter ended June 30, 2014 will be available shortly on Savaria's website and on SEDAR (www.sedar.com).

Financial Highlights

============================================================================
(in thousands,
 except per-share
 amounts and
 percentages -                  Quarters Ended     Six-Month Periods Ended
 unaudited)                           June 30,                    June 30,
                  ----------------------------------------------------------
                      2014      2013    Change      2014     2013   Change
----------------------------------------------------------------------------
Revenue            $21,977   $19,397      13.3%  $39,665  $36,600      8.4%
----------------------------------------------------------------------------
Gross margin as a
 % of revenue         30.6%     30.5%      n/a      29.9%    29.6%     n/a
----------------------------------------------------------------------------
Operating costs     $4,135    $3,963       4.3%   $7,824   $7,469      4.8%
As a % of revenue     18.8%     20.4%      n/a      19.7%    20.4%     n/a
----------------------------------------------------------------------------
Operating income    $2,579    $1,936      33.2%   $4,053   $3,714      9.1%
As a % of revenue     11.7%       10%      n/a      10.2%    10.1%     n/a
----------------------------------------------------------------------------
Gain (loss) on
 foreign exchange    $(315)     $126      (350)%     $(6)    $222     (103)%
----------------------------------------------------------------------------
Net income          $1,546    $1,425       8.5%   $2,751   $2,657      3.5%
----------------------------------------------------------------------------
Earnings per share
 - diluted           $0.05     $0.06     (16.7)%   $0.10    $0.11     (9.1)%
----------------------------------------------------------------------------
EBITDA (1)          $2,698    $2,525       6.9%   $4,918   $4,803      2.4%
----------------------------------------------------------------------------
EBITDA per share -
 basic and diluted   $0.09     $0.11     (18.2)%   $0.18    $0.21    (14.3)%
----------------------------------------------------------------------------
Dividends declared
 per share          $0.035     $0.02       n/a    $0.165    $0.10      n/a
----------------------------------------------------------------------------
Weighted average
 number of common
 shares
 outstanding -
 diluted            28,871    23,302       n/a    26,306   23,214      n/a
============================================================================
                               As at     As at
                            June 30,  Dec. 31,
                                2014      2013
------------------------------------------------
Total assets                 $65,844   $49,013
------------------------------------------------
Total liabilities            $28,316   $28,780
------------------------------------------------
Shareholders'
 equity                      $37,528   $20,233
================================================

(1)  Reconciliation of EBITDA with net income provided in the following
      table.

Although EBITDA is not recognized according to IFRS, it is used by management, investors and analysts to assess the Corporation's financial and operating performance.

Reconciliation of EBITDA with Net Income

============================================================================
(in thousands of dollars -            Quarters Ended       Six-Month Periods
 unaudited)                                 June 30,          Ended June 30,
                            ------------------------------------------------
                                    2014        2013        2014        2013
----------------------------------------------------------------------------
Net income                        $1,546      $1,425      $2,751      $2,657
----------------------------------------------------------------------------
Plus:
Interest on long-term debt           144         156         280         330
----------------------------------------------------------------------------
Interest expense and banking
 fees                                 29          24          51          46
----------------------------------------------------------------------------
Income tax expense                   591         532       1,013       1,010
----------------------------------------------------------------------------
Depreciation of fixed assets         244         208         484         381
----------------------------------------------------------------------------
Amortization of intangible
 assets                              190         182         387         383
----------------------------------------------------------------------------
Less:
Interest income                       46           2          48           4
----------------------------------------------------------------------------
EBITDA                            $2,698      $2,525      $4,918      $4,803
============================================================================

Contacts:
Helene Bernier, CPA, CA
Vice President, Finance
1-800-931-5655, ext. 248
[email protected]

Marcel Bourassa
President and Chief Executive Officer
1-800-661-5112
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant th...
SYS-CON Events announced today that Avere Systems, a leading provider of hybrid cloud enablement solutions, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere Systems was created by file systems experts determined to reinvent storage by changing the way enterprises thought about and bought storage resources. With decades of experience behind the company’s founders, Avere got its ...
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, will discuss how by using...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
SYS-CON Events announced today that CAST Software will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...